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G7 financial leader presents central bank digital currency guidelines

File Photo: Cryptocurrency Representations Bitcoin, Ethereum, Dogecoin, Ripple and Litecoin are located on the PC motherboard in this figure taken on June 29, 2021.Reuters / Daddle Bic / Illustration / File Photo

October 14, 2021

(Reuters) – A group of seven developed economies said on Wednesday that central bank-issued digital currencies need to “support and harm” the bank’s ability to meet its financial and financial stability obligations. He said that the criteria must also be met.

If the Central Bank Digital Currency (CBDC) is issued, it could complement cash and act as an anchor for liquid and secure payment assets and payment systems, G7 countries said after Wednesday’s meeting. rice field.

However, they said the currency must not violate central bank obligations and must be issued in a manner that meets strict privacy, transparency and accountability standards for the protection of user data.

“The Central Bank Digital Currency (CBDC) must be based on a long-standing commitment to transparency, the rule of law and sound economic governance,” the G7 financial leader said in a statement.

While the CBDC may step up cross-border payments, G7 countries “share responsibility to minimize harmful spillover effects on international currencies and the financial system,” he said.

Central banks around the world are stepping up their efforts to develop their own digital currencies to modernize their financial systems and speed up domestic and international payments.

While China has stood out for the issuance of digital currencies, the G7 Central Bank has been working to set common standards for the issuance of CBDCs in the course of its experiments.

(Report by Reika Kihara in Tokyo, edited by Christopher Cushing and Leslie Adler)



G7 financial leader presents central bank digital currency guidelines

Source link G7 financial leader presents central bank digital currency guidelines

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